Online Access Free F1 Exam Questions

CDO is an entity that is preparing to apply to its local stock market for a listing. CDO is currently run by a board of ten directors, each of whom manages a department of CDO. The board is chaired by Ms E who is also CDO's Chief Executive Officer.
Which TWO of the following actions would assist CDO to meet corporate governance regulations?

• A.Ensure that no part of any director's remuneration is linked to corporate or individual performance
• B.Separate the roles of Chair of the Board and Chief Executive Officer and appoint different individuals to each role
• C.Allow the Chief Executive Officer to appoint all new directors when a vacancy arises
• D.Appoint a number of non-executive directors to the board of CDO.
• E.Allow all directors to vote on their own remuneration increases

TUV owns property that has a carrying amount greater than its original cost due to a revaluation 2 years ago.
The property continues to be used by TUV up lo the date of its disposal and is sold for more than its carrying amount.
Which THREE of the following correctly describe the accounting treatment for the disposal of the property?

• A.The remaining balance on the revaluation surplus is transferred to the statement of profit or loss
• B.The property is depreciated based on its revalued amount up to the date of disposal
• C.The gam on disposal is recognised in the statement ot profit or loss
• D.The gain on disposal is recognised in other comprehensive income
• E.The property is depreciated based on its original cost up to the date ot disposal
• F.The remaining balance on the revaluation surplus is transferred to retained earnings

The International Accounting Standards Board's "The Conceptual Framework for Financial Reporting" identifies fundamental and enhancing qualitative characteristics of financial statements.
Which of the following is included within the fundamental characteristics?

• A.Comparability
• B.Materiality
• C.Understandability
• D.Verifiability

In accordance with The Conceptual Framework for Financial Reporting, faithful representation is a fundamental qualitative characteristic.
To be a faithful representation financial information must be as far as possible which THREE of the following?

• A.Timely
• B.Complete
• C.Free from error
• D.Neutral
• E.Understandable
• F.Comparable

Statements of financial position as at 31 December 20X8 for JK, LM and PQ are as follows:

[1] JK purchased 80% of LM's $1 equity shares on 1 January 20X8 for $260,000 when the retained earnings of JK were $110,000. At that date the non-controlling interest had a fair value of $63,000.
[2] JK purchased 25% of PQ's $1 equity shares on 1 January 20X8 for $90,000 when the retained earnings of PQ were $96,000.
[3] During the year JK sold goods to LM for $32,000 at a mark up of 33.33% on cost. Half of the goods were still in LM's inventory at 31 December 20X8.
[4] LM transferred $32,000 to JK on 30 December 20X8 in settlement of the inter-group trade. JK did not record the cash in its financial records until 2 January 20X9.
Calculate the value of inventory that would be included in JK's consolidated statement of financial position at 31 December 20X8.
Give your answer to the nearest $.